Can I refinance a mortgage of a blood relative without being on the title?

[ngmpt]

What is the name of your state (only U.S. law)? Alabama
On this site I saw that any blood relative can refinance a mortgage without being on the title or having it quit claim to that relative before hand, is that true?

 

[tranquility]

Only the owner can realistically "refinance" as only the owner (Or other entity with ownership powers, like the owner's attorney-in-fact.) can bind the property.

 

[FlyingRon]

Well for sure, the owner would have to agree to having the security instrument placed on the property. You can't place a mortgage on someone else's property. For practical matters, banks will NOT consider mortgages typically unless all the owners are part of the application, though they may consider others who are not owners as well. Still you will often not get favorable terms if all the applicants do not intend to owner-occupy the property. If you deed the property to the relative (in full or in part) to scam the bank, you can trigger a due-on-sale clause if you attempt to deed ownership away from those on the loan.

 

[ngmpt]

I will be the only one on the title after the refinance the relative will give up ownership to me.

 

[tranquility]

Then, you are not "refinancing" but purchasing the property. If the amount of the debt relieved is less that the fair market value, there may be other tax consequences as this is not an arms length transaction.

 

[ngmpt]

If the property is quit claim to me how long will I need to wait before I can refinance, because the rate on the home is 8%?

 

[tranquility]

If the other party gifts you the house, their loan is due immediately. Again, why go through this? Just buy the house. It's not a refinance, it's just a purchase.